The price of gold in Pakistan on Friday surged significantly, surging by Rs12,200 per tola to touch Rs440,936 in the domestic market. This is another record addition in a series of gains which are taking bullion prices to new all-time highs. The gains reflect the gains in the international market where gold increased by $122 per ounce.
From information made available by the All-Pakistan Gems and Jewellers Sarafa Association, the price of 10-gram gold also gained Rs10,459, bringing its cost to Rs378,031.
Local Rally Gets Boost from International Market
The spike in gold prices in Pakistan is a result of international market trends. The gold price in the international market increased by $122 and touched $4,185 per ounce, while the local prices showed an increase of $20 over the international market price.
The consistent rise of gold prices internationally is attributable to several macroeconomic factors coming together in unison: gold purchasing by central banks at all-time highs, the decline in the value of the US dollar, geopolitical risks, and the realization of a continuing structural bull market in gold. This Pakistani domestic market follows the trends seen internationally but with one more factor thrown into the mix—the rupee to dollar exchange rate.
ALSO READ; Could Gold Be Poised for a Powerful Rebound After Recent Losses?
Local Rally Gets Boost from International Market
The spike in gold prices in Pakistan is a result of international market trends. The gold price in the international market increased by $122 and touched $4,185 per ounce, while the local prices showed an increase of $20 over the international market price.
Silver Makes Moves Too
Silver was not left behind in the Friday rally in precious metals. Silver gained Rs319 per tola to touch Rs6,764 – following the established trend of silver mirroring the movement of gold with greater percentage increases during strong bullion days.
For Pakistani traders who monitor both metals, Friday’s gain in gold and silver means that precious metals overall are moving together on the back of similar macro forces driving demand up worldwide.
Given the international gold price at $4,185 per ounce, while the institutional outlook indicates a range between $5,000 and $6,000 in the next year, the trend of the gold price in Pakistan would indicate more room for appreciation, provided the current global macro environment favoring gold persists.
Nayab Fatima is a media professional specializing in fact-based journalism, research, and analytical reporting on technology, telecom, aviation, and automobiles.
